Russia’s invasion of Ukraine is making investors take stock of cybersecurity software companies’ shares. Recent interest in the cyber security stocks brings forth the security-related services as businesses and companies brace for cyber warfare. Spendings by corporations are expected to see a jump as online security takes the front seat. As per some estimates, worldwide spending on cyber security is expected to reach $151 billion by 2023.

In a recent development, Google has agreed to purchase cybersecurity company Mandiant Inc. for $5.4 billion. This move is expected to add internet security products for Google that will bolster the technology giant’s cloud-computing business as it takes on larger rivals Amazon Web Services and Microsoft Corp.

Nasdaq’s Cybersecurity Index gives investors a simple way to incorporate this theme into their portfolios through companies protecting data from data breaches and cyberattacks.

Also Read: Amazon announces stock split date, ratio and buyback of shares – Check details

3 Cybersecurity Indexes to track

ISE Cybersecurity Index (HXR)
ISE Cybersecurity UCITS Index (HUR)
Nasdaq CTA Cybersecurity Index (NQCYBR)

As geopolitical events unfold, there’s been a flurry of deal making in cybersecurity in recent months, as governments and companies face a growing number of hacks and global anxiety escalates over the potential ripple effects in cyberspace from Russia’s invasion of Ukraine.

Cyber security Insights

  • Venture capital firms have invested almost $39 billion into cybersecurity companies since 2011
  • 36 billion records were exposed due to data breaches during the first three quarters of 2020
  • Ransomware attacks increased 435% in 2020
  • 55.7 billion connected devices by 2025

Cyber security stocks watchlist

  • CrowdStrike Holdings (CRWD)
  • Fortinet (FTNT)
  • Mimecast (MIME)
  • NortonLifeLock (NLOK)
  • Palo Alto Networks (PANW)
  • Qualys (QLYS)
  • Tenable Holdings (TENB)
  • Zscaler (ZS)

Cybersecurity Exchange-traded funds (ETFs)

  • Global X Cybersecurity ETF
  • First Trust NASDAQ Cybersecurity ETF
  • ProShares Ultra Nasdaq Cybersecurity ETF (UCYB)
  • ETFMG Prime Cyber Security ETF

Cybersecurity stocks may look attractive due to heavy demand for digital security services. However, taking exposure in Cyber security stocks will only be a theme based approach to investing. It is better to keep a diversified portfolio rather than going overboard on any specific sector.

Disclaimer: The investing decision in these or any other stock should be taken on your own after carefully evaluating the business and other fundamentals of the company or after consulting one’s financial advisor. It is not a recommendation to buy, hold or sell in any of the stocks. Financial Express Online does not bear any responsibility for their investment advice.